The net profit for the quarter was $18.3 million, or $0.06 per diluted share, before charges primarily related to the Company’s previously announced plans to establish two separate, independent operating companies. This compares to a net profit before charges in the 2000 fourth quarter of $14.9 million or $0.05 per diluted share, and net profit of $27.1 million, or $0.09 per diluted share in the first quarter of 2000.
Including realignment charges of $4.2 million, Informix reported a net profit of $14.0 million in the first quarter of 2001. The Company ended the quarter with $254.7 million in cash and cash equivalents on its balance sheet and no debt.
Revenue of Ascential Software, the information asset management solutions company, was $33.3 million. Excluding the contribution from its i.Sell product offering which was discontinued in the first quarter, Ascential revenue increased 7% on a sequential basis to $30.4 million from $28.4 million in the previous quarter, and increased 31% from $23.1 million in the same period last year. This growth was driven primarily by the continued demand for the Company’s DataStage data integration and Media360 content management offerings. Including the contribution from i.Sell, reported revenue in the fourth quarter was $33.7 million. Revenue of Informix Software, the Company’s database business, was $183.8 million in the 2001 first quarter, compared to $193.1 million in the fourth quarter of 2000. Revenue at Informix Software continued to be driven by customers’ demand for data warehousing, business intelligence, and new Internet applications.
International sales represented 49% of the Company’s revenue during the first quarter of 2001.
In a separate press release issued today, Informix announced that it had entered into a definitive agreement to sell the assets of its database subsidiary, Informix Software, to IBM for $1.0 billion in cash.
The acquisition by IBM is good news for Informix Software’s database customers, partners, employees and stockholders, said Peter Gyenes, Chairman and Chief Executive Officer. IBM offers the global resources, investment protection, support and technology leadership our customers and partners need for the future, as well as exciting opportunities for our employees. This acquisition also extends the reach and relevance of key Informix technologies as they are evolved and integrated into future versions of IBM data management offerings.
Proceeds from the sale of the assets are expected to be approximately $800 million after taxes. The Company intends to apply the proceeds to fund the growth of Ascential Software as well as return a substantial portion of the available proceeds of the sale to stockholders through a stock-reduction program consisting of either a stock re-purchase or a special dividend. A final mechanism will be determined at or shortly after closing based on market conditions. Upon the closing of the transaction, which is expected to be in the third quarter of 2001, Informix Corporation will be renamed Ascential Software.
When completed, the transaction with IBM will establish Ascential Software, the leader in providing information asset management solutions, as a separate publicly traded company with substantial financial resources to achieve its goals, Mr. Gyenes continued. Our investors will then own a pure play vehicle to participate in one of the fastest growing sectors of the software industry. Ascential Software will begin its public life with approximately $1 billion in cash and no debt, a current annualized revenue run rate in excess of $130 million and strong products and partnerships, serving over 1700 customers worldwide. The Company is led by a proven management team with a successful tenure of working together.
The Company also announced a strategic alliance between Ascential and IBM whereby IBM will market and sell e-business solutions integrating Ascential’s DataStage(R), and Media360(TM) products.
